News Snapshot:
Capital Economics’ warning comes amid Wall Street’s fourth-quarter reporting season which kicked off last week. Tech stocks vulnerable While Capital Economics acknowledged that consensus earnings estimates have started to reflect the deteriorating economic outlook, it said this doesn’t necessarily mean that companies will beat profit forecasts. In fact, the firm suggested that the opposite is true; expectations typically adjust too slowly as earnings soften. “Quarters where there are significant downward revisions to estimates are often followed by fewer EPS beats in the subsequent reporting season,” Mr Grosvenor said. Of the 48 companies in the S & P 500 that have...
